Bangkok Life Assurance Public Co., Ltd. · SET:BLA
Bangkok Life Assurance Public — 3Q22 Earnings Presentation
22 slides from Bangkok Life Assurance Public's earnings presentation, Nov 14, 2022
Slide 1: Analyst Meeting Presentation 3Q22 & 9M22 Financial Results
Analyst Meeting Presentation 3Q22 & 9M22 Financial Results 14 Nov 2022 1
Slide 2: Agenda
Agenda 1 3Q22 & 9M22 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Q&A 2
Slide 3: Agenda
Agenda 1 3Q22 & 9M22 performance summary (K.Chaiyapol Inthuprabha – SVP, Corporate Strategy & Planning) 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Q&A 3
Slide 4: 3Q22 Performance summary
3Q22 Performance summary 2,086 MB 8,351 MB 10,437 MB First year premium Renewal Year Premium Total Premium +51%YoY, +66%QoQ +0.1%YoY, +34%QoQ +7%YoY, +40%QoQ 4.00% 942 MB 363% ROI Net Profit CAR -21 bpsYoY, - 25bps QoQ -20%YoY, -21%QoQ 2Q22: 364% Due to lower realized gain From lower investment inco
Slide 5: 9M22 Performance summary
9M22 Performance summary 4,751 MB 22,239 MB 26,989 MB First year premium Renewal Year Premium Total Premium +2%YoY -4%YoY -3%YoY 4.07% 2,932 MB 363% ROI CAR Net Profit (9M21: 4.03%) 4Q22: 301% +0.4%YoY Form higher interest & dividends From rising bond yield 5
Slide 6: Agenda
Agenda 1 3Q22 & 9M22 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change 3 Q&A 6
Slide 7: 3Q22: FYP +51%YoY thanks to FYP from Banca channel
3Q22: FYP +51%YoY thanks to FYP from Banca channel, RYP is stable, resulting in TP +7%YoY FYP RYP TP +51% +0.1% +7% Unit : Million Baht 8,339 8,351 2,086 10,437 9,719 1,380 62% 62% 62% 65% Bancassurance 76% Agent Channel 63% Others 35% 34% 34% 31% 29% 19% 8% 5% 3% 4% 4% 4% 3Q21 3Q22 3Q21 3Q22 3Q21 3
Slide 8: 9M22: FYP +2%YoY, exceeds industry due to Banca +11%YoY
9M22: FYP +2%YoY, which exceeds industry due to Banca +11%YoY. RYP is still in line with expectation FYP RYP TP +2% -4% -3% Unit : Million Baht 4,651 4,751 23,070 27,721 26,989 22,239 61% 66% 60% 59% 60% Bancassurance 60% Agent Channel Others 28% 25% 36% 34% 34% 35% 11% 9% 5% 5% 6% 6% 9M21 9M22 9M21
Slide 9: Banca: 3Q22 FYP +84%YoY
Banca: 3Q22 FYP +84%YoY Grew from rising sales proportion of par product New Business Premium New Business Premium Product Mix Unit : Million Baht Bancassurance Bancassurance +51% +84% 2,086 21% 1,588 28% Bancassurance MRTA 1,380 Par Agent Channel 76% 863 Endowment Others 57% 69% 63% 29% 19% 15% 10%
Slide 10: 9M22 Banca: FYP +11%YoY, FYP increases in all product categories
9M22 Banca: FYP +11%YoY, FYP increases in all product categories New Business Premium New Business Premium Product Mix Unit : Million Baht +2% Bancassurance Bancassurance +11% 4,651 4,751 3,122 23% 30% Others 2,815 Bancassurance MRTA 61% 66% Par Agent Channel Endowment Others 61% 51% 28% 25% 15% 19%
Slide 11: Agent: 3Q22 FYP -3%YoY
Agent : 3Q22 FYP -3%YoY Unit linked and par product accounted for 42% of product mix New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel +51% -3% 2,086 7% Unit-Linked 404 394 21% Pension & Others 29% Bancassurance 1,380 10% Endowment Agent Channel 76
Slide 12: 9M22 Agent: FYP -9%YoY
9M22 Agent: FYP -9%YoY Rider attachment is relatively stable at 28% New Business Premium New Business Premium Product Mix Unit : Million Baht Agent Channel Agent Channel 4,651 4,751 -9% 1,304 6% Unit-Linked 1,182 24% 31% Pension & Others Bancassurance 61% 66% 8% Agent Channel 9% Endowment 11% Others
Slide 13: 9M22 Other channel
9M22 Other channel Online: Double sales growth Group : Focus on quality sales not price competition The first health product on BLA Website New monthly-premium endowment product on BLA Website and Shopee (Sep). Direct Marketing: FYP -6%YoY Partnership : Steady growth of FYP Built various initiatives
Slide 14: Agenda
Agenda 1 2Q22 & 1H22 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments (K. Nattachai Rangpholsamrit, AVP - Equity Investment Department) 2.3 P&L and Key accounting change 3 Q&A 14
Slide 15: 3Q22 allocation sees higher bonds to lock-in higher yield
3Q22 allocation sees higher bonds to lock-in higher yield ST investment increased in preparation for benefit payment & investment opportunity (mainly fixed income) Asset Class 4Q21 2Q22 3Q22 Remark for QoQ movement Higher ST investment for benefit payment & investment ST Investment 2.3% 3.0% 3.5% op
Slide 16: 3Q22 investment income -6.5% YoY from muted realized gain
3Q22 investment income -6.5% YoY from muted realized gain Investment yield improved from rising yield curve and listed companies’ earnings. Investment income (mb) INVESTMENT INCOME: 3Q22 -6.5% YoY: drop mainly from realized gain +1.0% YoY • Interest income +2.1% YoY. Dividend +3.2% YoY 10,132 10,231
Slide 17: CAR increased to 363% in 3Q22 (+63% YTD, -1% QoQ)
CAR increased to 363% in 3Q22 (+63% YTD, -1% QoQ) The increase YTD is due to rising yield curve 400% 364% 363% 299% 300% 329% Total Capital Required (TCR) 300% 200% Risk charged by type to TCR 1.9% Operation Risk 100% 12.9% REITs Risk 0% 3Q21 4Q21 1Q22 2Q22 3Q22 41.0% Equity Risk Company CAR FWD 357
Slide 18: Agenda
Agenda 1 2Q22 & 1H22 performance summary 2 Key Highlights 2.1 Premiums and Business & Operation 2.2 Investments 2.3 P&L and Key accounting change (K. Jaruwan Limkhunthammo – EVP, Accounting and Finance) 3 Q&A 18
Slide 19: Statement of financial positions
Statement of financial positions 30 Sep 22 31 Dec 21 Inc / Dec MB % MB % MB % Assets Assets decrease by 2,626 MB Cash and cash equivalents 10,209 3% 7,637 2% 2,572 34% Total assets decline from 2021 mainly due Investment assets 322,883 94% 331,083 95% (8,200) -2% to lower market value of investment
Slide 20: 3Q22 Financial Summary
3Q22 Financial Summary Common Size Million Baht 3Q’22 3Q’21 %YoY 9M'22 9M'21 %YoY 3Q22 3Q21 9M22 9M21 3Q22 TNP +8% mainly from FYP +51%. First year premium 2,086 1,380 51% 4,751 4,651 2% 20% 14% 18% 18% Investment income -11% mainly from gain Renewal premium 8,351 8,339 0% 22,239 23,070 -4% 81% 88%
Slide 21: Policy benefit payment
Policy benefit payment Policy benefit payment Major line item +14% Payment : Million Baht Payment : Million Baht 25,456 98% +45% 22,327 8% -3% 84% 97% 10% 5% 10,434 87% 4% 41% -15% 7,216 32% -5% 8,963 5,543 9,197 18% -9% 4,698 4,114 3,923 21% 18% 4% 9% 5% 8% 45% 44% 25% 18% 1,522 1,381 16% 17% 15% 8
Slide 22: Q&A
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Bangkok Life Assurance Public — 3Q22 Earnings Presentation on 6ix